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Welfare Rankings From Multivariate Data, A Non-Parametric Approach

  • Gordon Anderson
  • Ian Crawford
  • Andrew Leicester

Economic and Social Welfare is inherently multidimensional. However choosing a measure which combines several indicators is difficult and may have unintended and undesireable effects on the incentives for policymakers. We develope a nonparametric empirical method for deriving welfare rankings based on data envelopment which avoids the need to specify a weighting scheme. The results are valid for all possible social welfare functions which share certain cannonical properties. We apply this method to data on human development.

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Paper provided by University of Toronto, Department of Economics in its series Working Papers with number tecipa-386.

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Length: 17 pages
Date of creation: 14 Jan 2010
Date of revision:
Handle: RePEc:tor:tecipa:tecipa-386
Contact details of provider: Postal: 150 St. George Street, Toronto, Ontario
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  1. repec:oup:qjecon:v:91:y:1977:i:1:p:1-13 is not listed on IDEAS
  2. Davidson, R. & Duclos, J.-Y., 1998. "Statistical Inference for Stochastic Dominance and for the Measurement of Poverty and Inequality," G.R.E.Q.A.M. 98a14, Universite Aix-Marseille III.
  3. François Bourguignon & Satya Chakravarty, 2003. "The Measurement of Multidimensional Poverty," Journal of Economic Inequality, Springer, vol. 1(1), pages 25-49, April.
  4. repec:oup:restud:v:46:y:1979:i:3:p:391-405 is not listed on IDEAS
  5. A. Atkinson, 2003. "Multidimensional Deprivation: Contrasting Social Welfare and Counting Approaches," Journal of Economic Inequality, Springer, vol. 1(1), pages 51-65, April.
  6. Xavier Ramos & Jacques Silber, 2005. "On The Application Of Efficiency Analysis To The Study Of The Dimensions Of Human Development ," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(2), pages 285-309, 06.
  7. Maasoumi, Esfandiar, 1986. "The Measurement and Decomposition of Multi-dimensional Inequality," Econometrica, Econometric Society, vol. 54(4), pages 991-97, July.
  8. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762.
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